Page 148 - How to Make Money in Stocks Trilogy

70 A WINNING SYSTEM

Price 60 50 40 34 30 26 22 19 16 14 12 10 8 7 6 5 4.0 3.4 3.0 2.6 2.2 Volume 160,000 80,000 40,000 © 2009 Investor’s Business Daily, Inc.

4 weeks 4 weeks e t closes t closes tight tight 2/1 Mar 1986
S&P 500 p p p t 4 Second 2/1 split in / d only 10 months only 10 months m 0 me m Dec 1985
Sell: climax top m c k base s c S S y o o o Big volume ol o g Big

20-week b k b e Volume m dryp dry-up ryup u Sep 1985
Buy
y
y
S
0
p p o Jun 1985
s t m u le d s t Red volume up m d R 2/1 Mar 1985
Stock sells down on New York based financial Stock sells down on New York based financial s k w Yo Y Y Y Y Y Y Y paper saying stock was overvalued; ultimately d a e o w c stock triples due to quarterly earnings and sale i e rtl r q t t acceleration over 3 consecutive
c

Market correction t a d l i tk tr a e a a Buy 5/4 Volume up Jun 1984 Mar 1984 Dec 1983 Franklin Resources increased 811% in 78 weeks.
n
o

Have you noticed how all the better stocks have c quarter-by-quarter earning’s lines going up at a quarter-by-quarter earning s lines going up at a g y strong rate? That’s the C and A in CAN SLIM. S d e Earnings g n acceleration s begins begins g O O PO IPO * S

Franklin Resources–1984 Weekly Chart Sep 1982 Jun 1982 Mar 1982 Dec 1981

Price = 20*eps 3.00 2.50 2.25 2.00 1.80 1.60 1.50 1.40 1.30 1.20 1.10 1.00 0.90 0.80 0.75 0.70 0.65 0.60 0.55 0.50 0.45 0.40 0.35 0.30 0.25 0.23 0.20 0.18 0.16 0.15 0.14 0.13 0.12 0.11